Bill for flat income tax clears Arizona house

Legislation to phase in a flattened Arizona state income tax has cleared the state House.

Like the federal government, Arizona now has different tax rates depending on the taxpayer’s income level.

The state’s rates range from just under 2.6 percent to about 4.5 percent. The bill would gradually reduce them to a flat rate of just below 2.1 percent. It also would repeal some current credits, deductions, adjustments and exemptions.

Democrat critics of the bill said there’s evidence that the bill actually could increase taxes paid by Arizonans.

Republican supporters said the bill would raises taxes for some people and lower them for others, but that overall it would be revenue-neutral for the state.

The House’s 40-18 vote along party lines Monday sends the bill to the Senate.

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